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Technology: Software Licenses Can Erase Virtualization Savings

Home › Technology: Software Licenses Can Erase Virtualization Savings

By Dick Weisinger

Software virtualization is proving itself to offer great benefits in manageability and hardware consolidation. It has the potential for offering huge savings. But the terms of the licenses for the software that runs on your machines may cancel out any savings gained by virtualization.

Kacey Weinberg has a great example of the insanity of current licensing language.
Suppose you create a 2-CPU virtual machine that run Oracle Enterprise Edition configured from a 16-CPU physical machine. Oracle’s policy is that “soft partitioning is not permitted as a means to determine or limit the number of software licenses required for any given server”. So in this example, all 16 CPUs would need to be licensed for a total cost of $760,000 — compared to $95,000 for just two CPUs.

What to do? Read the terms of your license agreement to make sure that you’re in compliance and aren’t caught off-guard. And try to negotiate with your vendor modern licensing terms that recognize virtualization.

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December 24th, 2008
Category: Technology
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